Whenever market or inflation goes down , eyes are on one man . The governor , is it a politician or a king , who is supposed to make rate cut happen like he owns a country.
But that Governor knows in their mind , yes rate cut will normalize according to other countries. As all money is coming from cheap interest rates , no one is buying assets of my country , no one is looking after my country because my country is still heeling towards high interest rate . They will take time as new tax rates , GST , land bills are going to pass out . Governor is not appointed to make markets and traders cheery always.
On 2nd of june , whoever predicts rate cut can happen , should put themselves in boot of Rajan ( A real true man who is trying to run a country ) , Not in shoes of Prime minister or finance minister or a new party which makes noise only.
Because RBI looks over the data , which was made enough to suggest that at what pace which policies are needed.
WPI , CPI all are slowing down .Not because of earlier rate cuts were happened , It is happening because peoples , buyers all are getting precautionary measures nowadays.
Those whoever are buyers in this market , should think about one thing is the last time governor as announced about the rate cuts .Indian markets have fallen , because banks monopoly power was challenged by him . Banks have to cut the interest rates at most by 25 bps , while RBI provided rate cut 2 times in a year . So even if this time RBI announce a rate cut as many are predicting , only banks are going to make money and leverage . Not a home loan taker , or any company is going to have benefit .
Germany's Deutsche Bank joined the chorus of rate cut-callers today saying it expects Reserve Bank Governor Raghuram Rajan to effect a quarter percentage point reduction in the policy rates on Tuesday.
Only 60% of bankers expect a rate cut on 2nd June , seems like most of them shy of the real truth .
"With most of the conditions laid down by the RBI in its April guidance have been met, we expect Rajan to cut the repo rate by 25 bps Tuesday and an equal amount in August, which would be the last rate cut in this cycle. He will find the current state of the economy and outlook for inflation.
But What going to happen is No rate cuts , we will still grow at same pace without any rate cuts.
Last vision i had of Pharma and IT companies , where those companies stock price ruined after quarterly results.
But that Governor knows in their mind , yes rate cut will normalize according to other countries. As all money is coming from cheap interest rates , no one is buying assets of my country , no one is looking after my country because my country is still heeling towards high interest rate . They will take time as new tax rates , GST , land bills are going to pass out . Governor is not appointed to make markets and traders cheery always.
On 2nd of june , whoever predicts rate cut can happen , should put themselves in boot of Rajan ( A real true man who is trying to run a country ) , Not in shoes of Prime minister or finance minister or a new party which makes noise only.
Because RBI looks over the data , which was made enough to suggest that at what pace which policies are needed.
WPI , CPI all are slowing down .Not because of earlier rate cuts were happened , It is happening because peoples , buyers all are getting precautionary measures nowadays.
Those whoever are buyers in this market , should think about one thing is the last time governor as announced about the rate cuts .Indian markets have fallen , because banks monopoly power was challenged by him . Banks have to cut the interest rates at most by 25 bps , while RBI provided rate cut 2 times in a year . So even if this time RBI announce a rate cut as many are predicting , only banks are going to make money and leverage . Not a home loan taker , or any company is going to have benefit .
Germany's Deutsche Bank joined the chorus of rate cut-callers today saying it expects Reserve Bank Governor Raghuram Rajan to effect a quarter percentage point reduction in the policy rates on Tuesday.
Only 60% of bankers expect a rate cut on 2nd June , seems like most of them shy of the real truth .
"With most of the conditions laid down by the RBI in its April guidance have been met, we expect Rajan to cut the repo rate by 25 bps Tuesday and an equal amount in August, which would be the last rate cut in this cycle. He will find the current state of the economy and outlook for inflation.
But What going to happen is No rate cuts , we will still grow at same pace without any rate cuts.
Last vision i had of Pharma and IT companies , where those companies stock price ruined after quarterly results.
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